Menu
Fill 'er Up: Gas prices here less than half what they were 9 months ago
As gasoline prices continue to tumble around Greencastle, Putnam County and central Indiana, a sign of less-fortunate times stands out in the middle of town.
The old Greencastle Clark station at Washington and Locust streets, which closed in mid-March 2014, offers a look back at just how bad prices were more than nine months ago. Frozen in time on the sign at the east end of the old Clark lot is the price from the day it closed -- $3.73 for a gallon
of regular unleaded.
That is more than double the cost of a gallon of gasoline at most Greencastle stations today. And nearly $2 more than the cheapest gas in town on New Year's Day.
In fact, the least expensive gas could be found Thursday afternoon at the Speedway (former Gas America) station at Indianapolis and Round Barn roads, where regular was selling for $1.77 per gallon.
"I haven't seen gas prices this low since I was in high school," a 32-year-old Greencastle native said, engaging in unusually upbeat gas pump conversation at Kroger.
"I haven't filled up my SUV for less than $30 in a long while," one woman pumping gas nearby said with a smile.
A man on the other side of the pumps echoed her comments.
"This is the second time this week I've filled up for less than $20," he said as the pump stopped at a quite reasonable $19.75 total.
A year ago, Kroger and McClure were selling the cheapest gasoline in town -- at $3.41 a gallon on Dec. 31, 2013. That's $1.64 more per gallon than on the final day of 2014.
Nationally, Wednesday's average price of gas was $1.06 per gallon less than a year ago. Drivers often are saving $15-$30 every time they go to the gas station compared to a year ago, figures show.
Overall, according to the AAA Hoosier Motor Club, Indiana's statewide gas price average ($1.999) currently stands as the nation's fourth lowest. Only Missouri ($1.897), Oklahoma ($1.959) and Ohio ($1.988) currently boast an average lower than the Hoosier state.
And for the first time since 2009, the average price of gas recently has dropped below $2 per gallon in four states. Seven additional states currently have average prices within a dime of that figure.
"Crude oil prices have been steadily dropping, North American stockpiles and overall petroleum production are high and the overall demand for petroleum is down," Greg Seiter, AAA Hoosier Motor Club public affairs manager, said in a press release. "The absence of extremely cold temperatures (up until Wednesday), which increases the demand for heating oil, is also working in our favor."
Indiana's ongoing gas price reductions are reflective of a nationwide trend. In fact, the national average price of gas has dropped for 97 consecutive days, the longest such streak on record.
Average gas prices, according to AAA, have fallen every day since Sept. 25 for a total reduction of $1.09 per gallon.
Indiana's annual average price of gasoline in 2014 was $3.34 per gallon, which was 15 cents less than the 2013 annual average of $3.49 per gallon. In other recent years, gas prices have averaged $3.60 (2012), $3.51 (2011) and $2.78 (2010).
During 2014, the highest daily national average was $3.70 per gallon on April 28, while the lowest was $2.26 per gallon on Dec. 31.
The cheapest gas prices of 2014 were in South Carolina for the third year in a row, which had an annual average of $3.10 per gallon. The next lowest annual averages included: Missouri ($3.11), Mississippi ($3.12), Tennessee ($3.13) and Arkansas ($3.14).
Hawaii had the most expensive gas prices in 2014 with an annual average of $4.16 per gallon. Next highest annual averages were Alaska ($3.84), California ($3.75), Connecticut ($3.65) and New York ($3.65).
U.S. average gas prices have declined $1.44 per gallon (39 percent) since reaching a 2014 high of $3.70 per gallon on April 28.
For December, the national average was $2.51 per gallon, the lowest monthly average since May 2009. In comparison, the average in December 2013 was $3.26 per gallon.
Gasoline prices have been falling primarily for several reasons, according to Purdue University energy economist Wally Tyner:
-- OPEC decided in late November not to cut production, a decision that sent crude oil prices tumbling further.
-- U.S. crude oil production has increased by one million barrels a day each of the past three years. "This U.S. supply increase is a major part of the current price story," Tyner said.
-- Production also has increased in North Africa and the Middle East. Libya, for example, is now producing a lot more, but Tyner said, "it is not clear how long that will last."
-- While the U.S. economy is doing well, the rest of the world's economies are not. Europe and Japan are growing at less than one percent per year, while China and India are growing more slowly than normal. Russia, meanwhile, is in recession. Tyner said that when growth slows, so does global demand for crude oil and products because oil demand is driven by economic growth.
"So it is the combination of slow growth in demand and the rapid growth in supply that has led to the current plunge in oil and gasoline prices," he explained.